rob kella - chief risk officer the simplicity of aviation safety management putting practical ideas...
TRANSCRIPT
Rob Kella - Chief Risk Officer
The Simplicity of Aviation Safety Management Putting Practical Ideas Into Practice - Airline Risk Management
Bringing Risk and Assurance Together
2
Jetstar
QantasEngineering
Finance& Strategy
People
Services(Airports and
Catering)
Qantas Airlines
Risk andAssurance
LoyaltyQantasFreight
Enterprises
The Group - “Sum of the Parts”
3Group Governance andRisk Management Model
Operations
Str
ateg
icFinancial
Segment Risk and Assurance Personnel
Risk and Assurance
Risk Review Group
Segment
Board of Directors
Board Safety, Environment and Security CommitteeBoard Audit Committee
Safety and
Environment
Mgmt Committee
Executive General Manager
“Scope to Reach Across
the Group”
Segment Risk/Safety Committees
Ongoing Management of Safety and Risks
Safety and Risk Leadership Committee (Exco)
4
Logical synergies across Risk and Assurance
• Aviation and occupational medical services
• Medical advice (employees and passengers)
• Environmental compliance and risk management
• Environmental improvement programs (inclusive of fuel and non-fuel initiatives)
• Internal compliance and control
• Corporate governance
• Occupational safety compliance and risk mgmt
• People safety improvement program
• Risk management advice, consulting and reporting
• Risk and assurance improvement program
• Aviation safety compliance and risk management
• Oversight of Group aviation safety standards
• Security compliance and risk mgmt
• Group security services
• Business resilience
Risk and Assurance
Chief Risk Officer
Aviation Medical Services
Internal AuditRiskSafety SecurityOccupationalHealth and
Safety
Environment and Fuel
Conservation
Established in March 2006
5
Increasing complexity of external risk environment
Continuous pressure to change - related impact on the risks of doing business
Management demand for more timely risk information
Increasing/changing demands from regulators; further compliance
requirements
Re-alignment of governance models within Group
Leveraging safety and risk management expertise across Group
Why?
6
• Oversighting operations
• Supporting Segments in complying with regulations and managing regulatory relationships
• Providing timely risk analysis/reporting/advisory and assurance services
Improve visibility and awareness of risk
Sponsor/manage risk and assurance improvement initiatives across business
through:
Objectives and Supporting Activities
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Board Safety Board Safety CommitteeCommittee
Qantas Airlines Qantas Airlines Safety CommitteeSafety Committee
Management Safety Management Safety Review Committee Review Committee (Flight Operations)(Flight Operations)
Type Committees Type Committees (Each Fleet)(Each Fleet)
Escalate Risks & Trends
Risk and Assurance
Representation
Common Information
Source (AQD)
Case Study 1
Supporting Safety Management - Flight Ops
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Input Process Output Outcome
Measure overall riskiness of operating
environment
Measure quality and effectiveness
of safety management
systems
Measure safety activity
Measure safety outcomes
Case Study 1
Measuring Safety Management Performance
9
2.1 Occurrence Risk Index
2.2 Findings Risk Index3.1 Safety System Assessment
3.2 Overdue Action Close Out
4.1 Occurrence Investigation
4.2 Safety Meetings
1.1 High Risk Occurrences
1.2 High Risk Findings
1.3 Damage Costs
Case Study 1
Measuring Safety Management Performance
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From
Percentage Effort
2005/06
50
50
2008/09
To
Protect/Create Value
Value for Money
Decision Support
Fieldwork and Reporting
Case Study 2
Ongoing Transformation Challenge
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Align/re-engineer R&A activities (risk assessments, investigations, audits, etc)
Work with Segments to re-align/re-engineer their related activities
Roll out information system strategy
Further redesign advisory services by leveraging risk information
Utilise integrated risk information to work with regulators (increase awareness
of risk management system); minimise potential for unnecessary regulation
Case Study 2
Current Improvement Initiatives
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Audits
Business Performance
Incidents
Risk Assessments
Policy/Regulations
Investigations
Data Capture Where?
Integrated Management System (Control
Framework)
Why?
KRI Scorecard(Lead/Lag)
Rev
iew
Pro
cess
es
Business Behaviours,Business Processes and Infrastructure
Monitoring and Analysis
Es
ca
lati
on
Ma
na
ge
me
nt
Re
vie
w L
ev
el
of
De
tail
Case Study 2
Integrated Management System - Overall Design
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Management review embedded in AOCs
Safety performance indicators developed
Mature safety information systems (eg, AQD)
Safety systems audit and safety investigation methodology and skills
Embedded operational risk assessment process
Expand scope to other operational areas across Group
Migrate to a broader risk control framework
Expand to provide interim/prototype solutions (eg, action tracking)
Develop common audit and investigation models
Integrate with a broader, common risk assessment model
Established SMS Process Elements IMS Process Elements
Case Study 2
Leveraging SMS Successes
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Organisation that embraces change
Culture that empowers sharing
Continued support/advocacy from the top
Organisational positioning
Culture that empowers safety and risk ownership
Structured/disciplined processes
Ongoing Success Factors